Table 9-6: Deposit Expansion Stages

question 47

Multiple Choice

Table 9-6: Deposit Expansion Stages
In Table 9-6, assume that banks loan out 100% of their excess banking reserves, there are no cash withdrawals, and all loan proceeds are spent. Figures have been rounded up to the nearest whole number.
-Refer to Table 9-6. What is the value of $H (the total loans) ?

• A) $1,000
• B) $4,000
• C) $5,000
• D) $6,000

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Definitions:

James Brian Quinn

An influential thinker in management theory, particularly known for his work on strategic outsourcing and the evolution of enterprise.

Large Organizations

Corporations, agencies, or groups that are extensive in size, typically comprising many people, resources, and complex structures.

Planned Method

A systematic, pre-determined approach or strategy designed to achieve specific goals or outcomes.

Companywide

Pertains to policies, practices, or actions affecting an entire organization.